Barney's Liquids and Aunt Bee's Lemonade plan to expand their international partnership for the marketing and distribution
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Question:
Barney's Liquids and Aunt Bee's Lemonade plan to expand their international partnership for the marketing and distribution of ready-to-drink tea products by adding 11 countries to their current markets. If the agreement is reached, operations are expected to begin 2 years from now. The snack and beverage company forecasts that the agreement will bring additional revenue of $400 thousand in the first year of the operation (i.e., the end of year 3), with amounts increasing by $12.5 thousand each year for the next 7 years. What is the present value now (t =0) of the total revenue if the interest rate of 17% per year? Specify answer to nearest cent.
Related Book For
Statistics The Art and Science of Learning from Data
ISBN: 978-0321755940
3rd edition
Authors: Alan Agresti, Christine A. Franklin
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